Description

Disney has long been an industry leader in content creation. The company has a successful history of creating both animated and live-action films and television programming as well as multipurposing its content for alternative forms of consumption. Through 2001, Disney has taken the position that compelling content will find distribution. To that end, Disney has avoided large investments in distribution, beyond its purchase of broadcaster ABC. Meanwhile, competitors have been buying expensive distribution assets to ensure their content will have a channel to consumers. Disney faced a challenge to its position on distribution assets when a cable company, owned by Time Warner, dropped ABC programming from its lineup during a critical ratings period called "sweeps week." The case looks at Disney's distribution capabilities in 2001, examines the competitive landscape for content producers, and surveys new distribution technologies.

Learning objective:

To discuss the distribution challenges and opportunities made possible by digitization of content and the convergence of new distribution technologies.